According to sources, LG Mobile is failing to justify the high production costs of its smartphones within its home country, Korea, to the corporation. A cost-cutting policy may be in the process of being instituted, causing the company to move the process to another country. The other option, according to the agencies, would be to raise prices. Given the fact that the factory floor of LG Mobile in Korea is strictly dedicated to the assembly of flagship smartphones, that is, the most advanced and expensive models, this output is unlikely.
LG had announced a record profit over the course of 2018, reaching $ 54.4 billion in revenue over the course of 2018, earning $ 2.4 billion in earnings alone. However, these figures refer to the corporation as a whole, which includes home appliances and home appliances, such as TVs. In the case of the mobile division, financial reports showed a decline: the segment closed 2018 with losses of US $ 700.6 million, a negative total that was already expected by investors and analysts at the time.
Reuters and Yonhap point out that competition with Samsung, which is leading not only the Korean market but also the global market, is the main point of loss of revenue for LG's mobile division.
The manufacturer did not comment on the rumors.
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